Tuesday, June 22, 2010

Tomorrow is critical...

...and you may ask why. Well, today's price action may have signaled that we just finished a wave B instead of in the beginning of minor wave 3.

First, I'll show you the 5 min chart.

#1 - we have what appears to be a very obvious triangle pattern that formed and completed today.

#2 - the size of the triangle does not match any of the other corrective waves we've had, so I cannot match it with a previous 2nd wave.

#3 - triangles that are not 4th waves are B waves.

#4 - today's price action ended at critical support: ~1090. The market has consistently shown us over the past weeks that this is a key level.

#5 - if today's price was the low for this move, then waves a & c would be equal.

Now, does this mean that there can't be a bear count here? Something potentially more bearish? Sure, and some times what appears to be an obvious triangle later appears to be a series of 1-2 counts. So this chart shows that potential.

#6 - we have yet to have an acceleration gap during this whole move down off of the top. If we are in an impulse move, tomorrow would be the perfect day to gap down and not look back until we at least get to the 1070 area where the market would want to work off some of the move before heading lower.

Best of luck out there. Be ready to get long if the market tips that way.
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